KEY POINTS
- Kumba Iron Ore secured a one-year supply deal with China’s CMRG.
- The agreement runs from April 1, 2026, to March 31, 2027.
- About 8–10 million tonnes could be supplied under the deal.
Anglo American has reached a one-year agreement to supply iron ore to China’s State-backed purchasing group, China Mineral Resources Group Co (CMRG), strengthening its access to one of the world’s biggest iron-ore markets.
The deal was reached through South African producer Kumba Iron Ore, which is majority-owned by Anglo American, and covers supplies to CMRG-member steel mills from April 1, 2026, to March 31, 2027.
Kumba Iron Ore has agreed to supply its premium iron-ore products to CMRG under the year-long arrangement.
The agreement does not cover ore produced at Anglo American’s Minas-Rio operation in Brazil. That production is not sold to Chinese customers through long-term contracts and therefore falls outside the new agreement.
Kumba is a major producer of high-grade iron ore, with the company reporting that it sold about 37 million tonnes of the commodity in 2025.
China is an important destination for Anglo American’s iron-ore production. The company’s global head of sales and trading, Ebrahim Dadoo, said about 54% of Anglo’s output is sold into China.
However, only part of those Chinese sales will be covered by the new CMRG agreement. Anglo also sells iron ore into China through spot transactions and other long-term contracts that do not involve CMRG.
Dadoo described the volumes covered by the agreement as relatively small compared with Anglo’s overall iron-ore portfolio.
Bloomberg estimates that Kumba could supply CMRG with approximately 8 million to 10 million tonnes of iron ore under the agreement, based on confirmed sales, estimated spot volumes and the number of CMRG-member steel mills.
CMRG increases its influence
China Mineral Resources Group has become an increasingly important force in the global iron-ore market.
The State-backed organisation represents more than half of China’s steelmakers in negotiations with international mining companies. Its growing role has given Chinese steel producers greater collective bargaining power when negotiating prices and supply terms with major miners.
For mining companies, securing agreements with CMRG can therefore be important, but negotiations have become increasingly challenging.
Anglo American’s agreement comes after other major producers also entered negotiations with CMRG.
BHP Group managed to secure a one-year agreement after months of discussions and restrictions, with the deal involving greater use of yuan-based pricing.
Fortescue, meanwhile, has been engaged in more difficult negotiations with the Chinese purchasing group.
The challenges faced by the major miners reflect the size and diversity of their iron-ore portfolios, which can make pricing and supply negotiations more complicated.
While the latest agreement gives Anglo American greater certainty over part of its Chinese sales for the next year, attention is likely to turn to what happens when the contract expires in March 2027.
The renewal negotiations could become another test of the relationship between the world’s major iron-ore miners and CMRG.
China’s purchasing group could seek better pricing or other concessions from miners when the current agreements come up for renewal, potentially putting further pressure on producers.
